TIDMGDL
RNS Number : 3149J
Greka Drilling Limited
11 June 2014
11 June 2014
Greka Drilling Limited
("Greka Drilling" or the "Company")
Final Results
Greka Drilling Limited (AIM: GDL), the largest independent and
specialized unconventional oil & gas driller in Asia, is
pleased to announce its audited financial results for the year
ended 31 December 2013.
HIGHLIGHTS
OPERATIONAL HIGHLIGHTS:
-- 7 contracted counterparties: Green Dragon Gas, CNPC Huabei,
CNPC Jincheng, Petroking, Sinopec(Bofa), ESSAR and Guangdong Bureau
of Coal Geology
-- Expansion into Indian market with 100 wells contracted by Essar Oil Ltd.
-- 50 wells drilled in 2013 compared with 90 wells drilled in 2012
-- Fastest vertical well was drilled in 9 days to a depth of
795m. Vertical wells drilled in 2013, on average, had a TD of 840m
and needed 22 days from spud to completion, compared with 37 days
in 2012
-- Fastest directional well was drilled in 7 days to a depth of
752m. Directional wells drilled in 2013, on average, had a TD of
1,077m and completion in 9 days from spud. No directional wells
were drilled in 2012
-- Fastest LiFaBriC well was drilled in 36 days to 1883m MD (TVD
862m). Average 88 days to complete LifaBriC wells for 2012
FINANCIAL HIGHLIGHTS:
-- Total Assets increased by US$16.5m to US$130.6m an increase of 14.5% year on year
-- EPS of US$0.0008, compared with US$0.005 in same period last year
-- Cash and bank deposits of US$16.1m
-- Gross margin 28%, compared with 20% in same period last year
Randeep S. Grewal, Chairman and CEO of Greka Drilling,
commented:
"Whilst our results were clearly impacted by a major client
curtailing its drilling programme in 2013, we are pleased that the
Company has maintained its core strategy of diversifying its client
base, geographical operational footprint and service strata and the
strength of this business model has ensured Greka Drilling enhanced
its operating profitability over the last reporting year."
"Looking forward, the business sees continued growth within
operations in both China and India and demand through further
contracts. With an excellent backlog of drilling contracts and
mobilisation orders from clients moving these contracts into
revenue, we are confident of the outlook for 2014. With our
strategy of diversifying our customer base further, Greka Drilling
is well positioned for future growth."
For further information on Greka Drilling, please refer to the
website at www.grekadrilling.com or contact:
Betty Cheung, Director Corporate Affairs
Greka Drilling +852 3710 0088
Dr Azhic Basirov / David Jones / Ben
Jeynes
Nominated Adviser
Smith & Williamson +44 20 7131 4000
Chris Hardie
Broker
Arden Partners +44 20 7614 5900
Mark Taylor
Broker
Charles Stanley Securities +44 20 7149 6000
James Henderson / Rollo Crichton-Stuart
Investor Relations
Bell Pottinger +44 20 7861 3800
CHAIRMAN'S STATEMENT
This is the third anniversary of the Company becoming an
independent operating entity and I am pleased to highlight, in line
with the Company's strategy, the Company continues to grow on a
diversified client base and service strata.
During this year, our main client, Green Dragon Gas elected to
substantially reduce its drilling plan for the year, which linearly
reduced our revenues. Concurrent to this workload reduction, the
Company successfully diversified its client base and secured
contracts with other clients so as to expand its core client base
and avoid such material changes in annual revenues by a single
client.
In China, contracts were successfully executed on projects for
all the large on-shore national energy companies, including CNPC,
PetroChina and Sinopec as well as Guangdong Bureau of Coal Geology.
This client diversification further diversified our services
substantially. We have now demonstrated successful drilling
capability on vertical, directional, horizontal and LiFaBriC wells
within traditional oil & gas strata and shale in addition to
Coal Bed Methane. This successful diversification provides long
term stability and greater growth potential.
Most importantly, this diversification has been achieved with
commendable performance letters being received from clients proving
a well managed and executed service. Additionally, this successful
performance is coupled with drilling efficiencies. The fastest
vertical well was drilled in 9 days, directional well in 7 days and
LiFaBriC well in 36 days. These records have been further improved
since year end.
In addition to the client diversification within China, the
Company succeeded in expanding its business to India and signed a
100 well contract with ESSAR Oil Ltd. This contract has been
recently mobilized. As a result five of our GD75 Rigs and all
related ancillary equipment are ready for transfer to India for
this program. We look forward to expanding our agreement with Essar
and other clients in India in due course.
The Company's flexible cost structure is demonstrated by this
year's results. Notwithstanding the material reduction in our
clients mobilization orders, the Company executed the actual
workload with a gross margin of 28%, by successfully reducing its
operating and carrying costs. This high level of flexibility is
another material asset for the Company and is achievable as a
result of the asset ownership complemented with the flexible
employee compensation structure. As a result, the Company has a low
fixed carrying cost and maintains a predominately variable cost
structure burdened only by the mobilized workload.
We concluded the year with a backlog of US$97m in contracted
work load. This inventoried revenue will be realized in the future
when our clients provide the mobilization orders giving us the
instructions and confirmation of their readiness to proceed with
the contracted drilling program. Our business development teams
continue to negotiate additional contracts so as to add to this
backlog.
Whilst our expansion plans during 2013/2014 focused on China and
India, we continue to respond to service demands from potential
clients across Asia and Europe. The Company will continue to
monitor and evaluate these demands and expects to see further
operational expansion geographically in 2015. The Company intends
to focus and capitalize on its unique competency and successful
track record within the unconventional E&P sector. The Company
expects to establish its corporate headquarters in Singapore so as
to optimally manage the group's expanding business.
Finally, I would like to thank the management team and employees
for their agility and flexibility in successfully dealing with the
challenges while maintaining the vision, performance and objectives
of Greka Drilling this year. We look forward to monetising this
core strength as we continue our diversified expansion in China and
onto India.
Randeep S. Grewal
Chairman
Consolidated Statement of Comprehensive Income
Year Ended Year Ended
31 December 31 December
2013 2012
Note US$'000 US$'000
--------------------------------------- -------- ------------------ ------------------
Revenue 3 30,528 60,918
Cost of sales (21,863) (48,459)
--------------------------------------- -------- ------------------ ------------------
Gross profit 8,665 12,459
Administrative expenses (8,966) (8,047)
--------------------------------------- -------- ------------------ ------------------
(Loss)/Profit from operations 4 (301) 4,412
Finance income 5 2,992 367
Finance costs 6 (1,605) (1,322)
--------------------------------------- -------- ------------------ ------------------
Profit before income tax 1,086 3,457
Income tax charge 9 (778) (1,625)
--------------------------------------- -------- ------------------ ------------------
Profit for the year 308 1,832
Other comprehensive expense, net of
tax:
Exchange differences on translation
of foreign operations (949) (8)
--------------------------------------- -------- ------------------ ------------------
Total comprehensive income for the
year (641) 1,824
--------------------------------------- -------- ------------------ ------------------
Profit for the period attributable
to:
- Owners of the company 175 1,831
- Non-controlling interests 133 1
--------------------------------------- -------- ------------------ ------------------
308 1,832
--------------------------------------- -------- ------------------ ------------------
Total comprehensive (expense)/ income
attributable to:
- Owners of the company (574) 1,824
- Non-controlling interests (67) -
Greka Drilling (LSE:GDL)
過去 株価チャート
から 6 2024 まで 7 2024
Greka Drilling (LSE:GDL)
過去 株価チャート
から 7 2023 まで 7 2024
